International shipping is one of the largest industries in the world, generating billions of dollars a year. Businesses across the globe rely on international shipping to expand their operations to new markets across borders and connect with customers worldwide. It’s an exciting opportunity for businesses to start selling their goods internationally, however, it doesn’t come without its risks.
Shipping goods internationally introduces a range of challenges businesses must navigate to keep their supply chain running smoothly. From complex customs regulations, fluctuating freight rates and global events, there’s plenty that can impact shipments and cause delays. To remain competitive, businesses must stay informed, be able to adapt their supply chains where necessary and work with reliable partners. Let’s take a closer look at the most common risks businesses face when shipping internationally and how they can mitigate them to ensure successful operations.
One of the biggest challenges of international shipping is navigating the complex web that is international customs regulations. Regulations, import restrictions and taxes vary from country to country, meaning shippers need to be clued up about the specific requirements of each destination.
The customs process involves the exporter providing documentation, such as a commercial invoice and certificate of origin, to customs authorities to verify the contents and value of the cargo and ensure it complies with the relevant regulations. Then, import duties and taxes are calculated based on Harmonised System (HS) codes, which are used to classify goods. Failure to provide the correct documentation or classify goods incorrectly can lead to delays at customs, fines and potentially the seizure of goods.
Damage or Loss of Cargo
When shipping goods long-distance, whether it be via ocean freight or air freight, there’s always the possibility of damage or loss of cargo. Goods pass through various stages and hands during the shipping process. This includes handling at ports when loading or unloading, or transit via shipping vessels or aircraft, all of which present opportunities for errors. Additionally, goods may be exposed to harsh weather conditions, which can further increase the risk of damage.
Supply Chain Disruptions
Supply chain disruptions are events that disrupt the production, sale or distribution of products. They happen due to a variety of factors, such as natural disasters, global events or seasonal shipping demand. Recent events such as the Red Sea crisis and U.S. dock worker strikes have had huge impacts on supply chains, causing delays across key trade routes and increasing freight costs. Additionally, when shipping demand fluctuates and peak seasons occur, this can put increased pressure on the logistics industry, causing delays and inflated rates.
Fluctuating Freight Rates
Shipping costs can be unpredictable and can fluctuate depending on various factors, such as fuel prices, shipping demand and global situations. For example, due to the ongoing Ukraine-Russia war, the price of fuel increased significantly as both countries are major exporters of energy supplies. The increase in fuel prices has had a knock-on effect throughout the shipping industry and has led to higher transportation costs.
When shipping demand peaks, this often leads to freight rates rising as well because there’s less capacity to meet the demand. This is often seen around holiday periods, such as the run up to Black Friday and Christmas and in the run up to Lunar New Year. Additionally, supply chain disruptions cause increased prices as businesses scramble to secure space to get their goods moving.
There are various solutions that businesses can adopt to mitigate the risks associated with international shipping and ensure that their goods move across borders efficiently.
Use Real-Time Tracking Systems
Utilising tracking technology is going to provide real-time updates of where cargo is and monitor its status throughout the journey. This provides businesses with greater visibility and control of their supply chains, and provides peace of mind that their goods are safe and on schedule, as well as allowing them to prepare for unforeseen disruptions.
Stay Informed
It’s important for businesses to stay informed about the latest customs regulations, duties and taxes of the countries that they regulate import and export to. This will help avoid confusion when filling out the necessary paperwork and avoid potential delays and fines.
Pack Cargo Securely
It’s important to ensure that all cargo is packaged securely and with high-quality materials to prevent goods from damage. Fragile and high-value items should be packaged with additional cushioning and labelled as fragile to minimise damage. Shippers should also ensure that theircargo is labelled correctly to prevent fines and ensure their goods arrive at the correct destination, without getting lost. Shippers need to have cargo insurance too, to cover
Plan Ahead
Proper planning is key to mitigating international shipping risks. Businesses that regularly ship overseas should account for potential delays by planning extra time into their shipping schedules, especially during peak seasons.
Partner With A Reliable Freight Forwarder
The best way to adopt all of these solutions and ensure your supply chain continues to run smoothly is to partner with a reliable freight forwarding company. With a freight forwarder by your side, they’ll work with their global network of partners to negotiate and secure the best rates and routes for their customers. Working closely with a freight forwarder also means gaining access to their expertise in handling complex logistical challenges, navigating customs regulations and filling out the required documentation. A freight forwarder is on hand to streamline the shipping process for you, reducing the risk of delays, errors and potential fines.
Our job at Jenkar Shipping is to understand the complexities of international shipping like the back of our hand, so you don’t have to. With over 45 years of experience in the industry and a network of global partners by our side, we can provide you with personalised freight solutions to meet your exact needs.
Our expert team will work closely with you to understand your business, secure you the best freight rates and ensure all of your customs paperwork is in order to prevent delays. We’ll even provide you with access to our state-of-the-art tracking solution, WebTrack, to give visibility over your shipments and peace of mind that they’re in safe hands. Mitigate the risks of international shipping by partnering with a reliable freight forwarder like Jenkar. Contact us today to get started.
Stay up to date with the latest trends, news and updates in the freight forwarding industry to ensure that your logistics operations are always optimised for efficiency.
The Risks Of International Shipping And How Your Business Can Avoid Them
International shipping is one of the largest industries in the world, generating billions of dollars a year. Businesses across the globe rely on international shipping to expand their operations to new markets across borders and connect with customers worldwide. It’s an exciting opportunity for businesses to start selling their goods internationally, however, it doesn’t come […]
Read More
Everything You Need To Know About The U.S. Port Strikes
In October 2024, U.S. Dock Workers across the East and Gulf Coasts went on strike for the first time since 1977. The strike began 1st October and ended two days later on 3rd October when the United States Maritime Alliance (USMX), agreed to a short-term contract extension with the International Longshoremen’s Association (ILA) until 15th […]
Read More
5 Freight Forwarding Trends To Watch Out For In 2025
As we approach the end of 2024, we’ve begun looking forward to 2025 and what the freight forwarding industry may look like. The logistics and freight market is constantly evolving, presenting shippers and carriers with challenges that they must navigate and overcome. 2024 has presented plenty of these challenges, and it seems as though we’ll […]
Read More